KSE-100 stages turnaround, rises 0.72%

A day after the benchmark index plummeted nearly 2%, the Pakistan Stock Exchange (PSX) witnessed a turnaround on Tuesday and the KSE-100 Index rose 0.72% as a host of positive triggers boosted investor sentiment.

Market participants took cues from receipt of $500 million in assistance from the Asian Infrastructure Investment Bank (AIIB) and beginning of talks between Pakistan and the International Monetary Fund (IMF).

As a result, the KSE-100 Index closed with a gain of 302.25 points or 0.72% at 42,373.59.

Trading began with a spike and the market maintained its ascent throughout the day. The rise accelerated in final hour and elevated the gains.

KSE-100 plummets 2% as market reacts to 'surprise' rate hike

Automobile, banking and oil spaces closed with gains while cement and fertiliser segments closed mixed.

Arif Habib Limited, in its report, said that a positive session was witnessed at the PSX.

“The index was driven by the bulls throughout the day which shows signs of recovery after Monday’s sharp decline,” it said. “Investors’ sentiments improved as government of Pakistan received $500 million from the AIIB.”

Investor participation remained active throughout the day, with third tier stocks witnessing the most activity as well.

A report from Capital Stake added that bulls made a comeback at the PSX on Tuesday.

“Indices accumulated gains for most part of the day, while volumes depreciated from last close,” it said. “The news of $500 million loan receipt from AIIB, helped boost investors’ confidence. Moreover, the initiation of virtual engagement and discussions between International Monetary Fund (IMF) and State Authorities for loan program also acted as a positive trigger.”

On the economic front, rupee remained stable against the US dollar and closed unchanged at Rs223.95.

Sectors painting the benchmark KSE-100 in green included banking (67.67 points), technology and communication (60.39 points) and power generation and distribution (57.47 points).

Volume on the all-share index dropped to 139.2 million from 244.4 million on Monday. The value of shares traded fell to Rs5.1 billion from Rs6.9 billion recorded in the previous session.

WorldCall Telecom was the volume leader with 18.6 million shares, followed by Unity Foods with 10.1 million shares and K-Electric with 7.5 million shares

Shares of 339 companies were traded on Tuesday, of which 188 registered an increase, 123 recorded a fall, and 28 remained unchanged.